Tax Accountant Services | AIMS Accountants for Business

The cost of regulation

I’ve just read that the budget for the ’Financial Conduct Authority’ and the Prudential Regulation Authority will be £646.3 million. You need to take a big step back and a deep breath to reflect on this figure. It’s a vast sum of money.

But this is not the real message. The FCA collected nearly £300 million of fines. What do you think is happening to this money? If you think it is being used to reduce the regulation cost then I am afraid you are wrong. This money is being handed over to the Treasury. And this doesn’t make sense to me.

Shouldn’t the fines being paid by the “naughty boys” be used to reduce the costs of the “good boys”?